Commerce Accountancy · General Awareness

Entrepreneurship and Innovation

1,063 Questions

Entrepreneurship and innovation questions address business management, economic development, and small scale industries. These topics are highly relevant for commerce students and competitive exams focusing on business administration. Review these questions to understand enterprise structures.

Small scale industriesWomen entrepreneurs enterpriseLegal risk mitigationMultinational corporationsKnowledge based industries

Entrepreneurship and Innovation Questions

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Personal characteristics to be a sucessful Entrepreneur includes _______.

  1. understanding environment

  2. creating management options

  3. encourage open discussion

  4. all of the above.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Successful entrepreneurs typically possess a wide range of skills, including the ability to understand their environment, manage options, and foster open communication within their teams. All these traits contribute to effective leadership and business growth.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

When an entrepreneur introduces a new product or service to meet the need of old market it is called ________.

  1. allocation of new source

  2. product development

  3. diversification

  4. market expansion
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Diversification is the term which usually used to mean the introduction of a new product or service to meet the need of an old market. Diversification is an expansion of the range of product. Offerings of an existing product or service in a new market; a new product in to an established market and a new product in a new market.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Common reasons for entrepreneurial failure include all but which one of the following? 

  1. Poor implementation

  2. Lack of capital

  3. Adequate financial support

  4. Ineffective human resources
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

There can be many reasons for failure of an entrepreneurship. The idea of the business may be wrong considering the environment in which to operate.

The implementation phase may prove bad.
There can be short supply of capital or inconsistent supply of capital. 
There can be ineffective human resources having lack of skills and ability.
The risk taking ability of the entrepreneur may be less.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Why should an entrepreneur do a feasibility study for starting a new venture?

  1. To identify possible sources of funds

  2. To see if there are possible barriers to success.

  3. To estimate the expected sales.

  4. To explore potential customers.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Before starting any work, a preliminary study must be carried on. Before starting any business, the feasibility of the idea must be carried out. To start with there should be market study done to know the customers for the product.

To identify the possible sources of funding. To estimate the sales that can be achieved. 
To check out the competitors for the products or services.
To analyse the risks that may be faced.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Which types of entrepreneurs excel at problem solving in a systematic way?  

  1. Artiste

  2. Analyst

  3. Superstar

  4. Advisor
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An analyst understand how business is structured and how it operates. Analyst types of entrepreneurs excel at problem solving in a systematic way.

Multiple choice organization of commerce and management types of entrepreneurs functions and role of an entrepreneur entrepreneurs entrepreneurship: an introduction, nature, importance and problems

An entrepreneur needs to have a blend of ___________.

  1. communication skills and intelligence

  2. managerial skills and enterprenurial skills

  3. business skills and cooperative skills

  4. intrapersonal skills
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An entrepreneur is a person who with his/her innovative ideas set a business while a manger is the person who is administered with the responsibility for running the  business. An entrepreneur needs to posses the both the skills. He like a manager has sometimes to manage the business he /she has set up.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Social entrepreneurs acts as the ___________.

  1. Change agent for poor people

  2. Change agent for government

  3. Change agent for society

  4. Change agent for nation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A social entrepreneur is a person who develops or establishes an enterprise with the aim of solving social problems. They aim for bringing a change in the society. They act as the change agent for society's good.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

The funding of social entrepreneurship is essentially a problem of -

  1. Availability of investment option

  2. Financing structuring

  3. Profits

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Financing structuring refers to the balance between all companies liabilities and equity. In case of social entrepreneurship it is essentially a problem. 

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

An entrepreneur generates employment for which of the following categories of people?

  1. For women

  2. For lower middle class

  3. For SC/ ST

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Entrepreneurship is a major driver of inclusive economic growth, creating employment opportunities across diverse demographic groups, including women, lower-middle-class individuals, and marginalized communities.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

How do entrepreneurs ensures economic efficiency?

  1. By reducing wastes

  2. By increasing yields

  3. By technical progress

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Economic efficiency does not only mean gaining profits. For ensuring economic benefits many factors have to be considered. Entrepreneurs by focusing on some areas achieve economic efficiency. 

 By reducing wastes in production, by increasing yields per input and focusing on technical progress an entrepreneur achieves economic efficiency.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

How can a person search for entrepreneurial opportunities?

  1. Personal observation

  2. Discovery or Innovation

  3. Personal/ Professional contacts

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Entrepreneurs identify opportunities through a variety of methods, including personal observation of market gaps, technological innovation, and leveraging their professional networks. All these are standard ways to discover new business prospects.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

What are the roles and functions of the entrepreneur in relation to the enterprise?

  1. Developing exchange relationships

  2. Political administration

  3. Management control

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An entrepreneur's role is comprehensive, involving the development of business relationships, administrative tasks, and maintaining management control over the enterprise's operations.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

"The entrepreneurship is essentially a creative activity or it is an innovative function" is said by _______.

  1. Schumpeter

  2. Kelsen

  3. Henry Maine

  4. Peter Drunker
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Joseph Schumpeter is famous for his theory of economic development, which defines the entrepreneur as an innovator who performs the function of 'creative destruction' by introducing new products or processes.

Multiple choice organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

Mr. A is influencing an Entrepreneur's s career choice and style, Mr. A is a ________.

  1. role mode

  2. moral-support network

  3. professional support network

  4. support system
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A role model influences an entrepreneur's career choice and professional style by providing an example to emulate. This is different from support networks (moral or professional) which provide assistance, or a general support system. The term 'role mode' is likely a typo for 'role model', which is a well-established concept in entrepreneurial career development.